Topics pipe companies | SEBI | IPOs

Press Trust of India  |  New Delhi  Last Updated at January 31, 2022 18:56 IST

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Hariom Pipe Industries has received capital markets regulator Sebi's go ahead to raise Rs 100-120 crore through an initial public offering.

The public issue comprises sale of 85 lakh equity shares of the company, the Draft Red Herring Prospectus (DRHP) filed with Sebi showed.

Hariom Pipe Industries, which had filed preliminary IPO papers with Sebi in September 2021, obtained its observation letter on January 25, 2022, an update with Sebi showed on Monday.

In Sebi's parlance, observation implies the regulator's nod to float IPO.

According to market sources, the IPO (Initial Public Offering) is expected to fetch Rs 100-120 crore.

Going by the draft papers, net proceeds from the initial share-sale will be used to fund its capital expenditure, working capital requirements besides expenses for general corporate purposes.

Headquartered in Hyderabad and incorporated in 2007, the backward integration focused company has a strong hold on its steel products with wide distribution network across India and especially in the southern and western regions.

The company has a diverse product portfolio consisting of Mild Steel (MS) billets, Pipes and tubes, Hot Rolled (HR) voils and scaffolding systems and caters to diverse end-use industries such as housing, infrastructure, agriculture, automotive, solar, fabrication and engineering.

Hariom Pipe Industries plans to set up a new manufacturing plant at Sangareddy in Telangana with a total estimated installed capacity of 51,943 tonnes per annum.

It plans to commence production in FY21, as per the draft papers.

As on October 2019, the company has an installed capacity of approximately 2.41 lakh tonnes per annum.

For FY21, it's total income stood at Rs 254.82 crore as against Rs 161.15 crore in the preceding fiscal. Its net profit stood at Rs 15.13 crore for the said period as compared to Rs 7.90 crore in the previous financial year.

ITI Capital is the sole book-running lead manager to the issue.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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